Gunkul plans to take part in ERC auction
SET-listed Gunkul Engineering, a renewable energy developer and construction firm, has announced its participation in an auction for power generation from renewable resources to be held by the Energy Regulatory Commission (ERC).
The ERC is allowing investors to purchase bidding documents as state grid operators are scheduled to buy electricity from licensed companies to develop renewable energy power plants with a combined generation capacity of 5.2 gigawatts during the period 2022 to 2030.
The 5.2GW capacity is projected to come from four renewable sources: biogas (335 megawatts), wind power (1,500MW), on-ground solar farms (2,368MW), and onground solar farms with energy storage systems (1,000MW).
According to the ERC, the purchase of electricity from these four sources would increase the proportion of the country’s renewable energy to 50% of fuels used for national electricity generation, up from around 12% last year.
The regulator will consider the technical qualifications of power businesses and the electricity prices of the participating companies before reaching a decision.
The ERC expects to receive proposals from companies during November and December. It is scheduled to announce a list of all qualified participants in January 2023.
The companies will then be screened again, with the result set to be announced between May and June. The companies selected are expected to start the commercial operation of their power plants between 2024 and 2030.
Somboon Aueatchasai, chief executive of Gunkul, said the company aims to win at least 1 gigawatt of the total capacity. Of the total, 0.3GW would be generated by wind power, with 0.7GW generated by solar power.
According to Mr Somboon, the period 2022 to 2023 offers a good opportunity for power generation businesses thanks to the state’s supportive policies in the area of clean energy development which would pave the way towards carbon neutrality within 2050.
Gunkul’s main revenue comes from electrical equipment trading, construction, renewable energy power generation and finance leases, along with its latest venture into hemp production.
He said Gunkul plans to allocate 41 billion baht of capital spending over the next six years to its business expansion.
Of the total, 23 billion baht is slated for joint ventures with potential business partners, 15 billion for expanding clean power generation assets by acquiring more assets in Asia-Pacific, 2 billion for further development of hemp production and 1 billion for innovation.
Mr Somboon said the company also plans to spin off its construction business subsidiary, Future Electrical Control Co, and list it on the Stock Exchange of Thailand.
Filing for Future Electrical Control’s initial public offering with the Securities and Exchange Commission is likely to receive approval this year, Mr Somboon said.